Trunkbow International Holdings, Ltd. (TBOW)

[tbirdman]

TBOW $0.80 : Why I'm betting against the herd:


Latest short data shows only 15k shares short. Now 100k shares available @ IB, was only 6k Friday...fwiw. I hate to beat on a dead horse here, but this simply looks like one or more funds exciting (and a huge opportunity). Not sure when they'll be done, but TBOW should be back over $1 when they are imho. That, and any time now we should be getting an update on the going private...I can't help but accumulate shares down here.

TBOW has already been targeted for delisting due to share price: (screw this, we're going private) http://alturl.com/xudzp and then again for late filing (halted for this, which they came out of unscathed, satisfying the SEC. Director resignation here a possible red flag) http://alturl.com/zp9t5

Read the proposal below; very good risk reward here imho, but as always nothing is a sure thing. Key points from the filing:

*Offer price : $1.46

*CEO/Chairman own 47% of the O/S
VeriFone owns 8%

*Days since offer: 222 (not unusual, WH took over 365 days!)

*Offer made by: CEO (Li Qiang) & Chairman of the BOD (Hou Wanchun)

*Special committee formed: yes

*Legal advisor retained: Cleary Gottlieb Steen & Hamilton LLP (GRRF,and YTEC used them, both closed the offers)

*Acquisition financing method: debt and equity capitol, discussions with VStone Investment Management Ltd. "We are confident that we will secure adequate financing to consummate the acquisition."


THIS IS BIG:

We are prepared to negotiate and finalize definitive agreements (the “Definitive Agreements”) in a timely manner.

Confidentiality. We will, as required by law, promptly file a Schedule 13D to disclose this letter. However, we are sure you will agree with us that it is in all of our interests to ensure that we proceed in a confidential manner, unless otherwise required by law, until we have executed the Definitive Agreements or terminated our discussions.

The CEO stated through the CFO translator on last quarter's conference call, that an update would be provided in around 1 month. This leads me to believe we will have the final decision within a few weeks.

Its either going to be one big pop a one sad drop. I'm betting on the latter...


http://alturl.com/bah8g

Don't forgot this little tidbit on the back burner:

http://alturl.com/mk49h

I will be digging more, but think we don't have very much time here..I hand the baton off to you Heeeeber!